DoD Awards $40M for ICTAT to VSE Corp, Ship Building & Repair
Contract Overview
Contract Amount: $40,045,945 ($40.0M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2010-03-04
End Date: 2012-01-29
Contract Duration: 696 days
Daily Burn Rate: $57.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ICTAT FOR EGYPT FOR FMS CASE EG-P-GIG
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.0 million to VSE CORPORATION for work described as: ICTAT FOR EGYPT FOR FMS CASE EG-P-GIG Key points: 1. Contract awarded to VSE Corporation for ICTAT system. 2. Significant spending in Ship Building and Repair sector. 3. Full and open competition after exclusion of sources used. 4. Contract duration of 696 days. 5. Cost Plus Award Fee contract type.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure can lead to costs exceeding initial estimates if not managed carefully. Benchmarking against similar ship building and repair contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, suggesting a competitive process was initiated. However, the 'exclusion of sources' clause warrants further investigation into why specific sources were excluded.
Taxpayer Impact: Taxpayer funds are being used for a critical defense system, with the final cost influenced by performance incentives within the award fee structure.
Public Impact
Supports critical defense capabilities for Egypt through Foreign Military Sales. Impacts the shipbuilding and repair industry, a key sector for national security. Ensures technological readiness for naval operations. Potential for cost overruns due to the Cost Plus Award Fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Cost Plus Award Fee structure can inflate costs.
- Exclusion of sources in competition needs clarification.
- Limited transparency on specific ICTAT system functionalities.
Positive Signals
- Awarded through full and open competition.
- Supports a key FMS partner.
- Addresses critical defense needs.
Sector Analysis
This contract falls within the Ship Building and Repair sector, which is a significant area of defense spending. Benchmarks for ICT systems within this sector are highly specialized and depend on the specific technology deployed.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of the Navy, as the contracting agency, is responsible for oversight. The 'exclusion of sources' aspect of the competition method may require additional scrutiny to ensure fairness and value.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPAF.
- Lack of clarity on 'exclusion of sources'.
- Limited public information on system specifics.
- No indication of small business participation.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.0 million to VSE CORPORATION. ICTAT FOR EGYPT FOR FMS CASE EG-P-GIG
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $40.0 million.
What is the period of performance?
Start: 2010-03-04. End: 2012-01-29.
What specific ICTAT functionalities were procured, and how do they align with Egypt's defense modernization needs?
The ICTAT (Information, Communications, and Technology Assistance) system likely provides critical communication and data management capabilities for military operations. Its specific functionalities would be tailored to Egypt's defense requirements, potentially including command and control, intelligence sharing, or logistical support systems, all crucial for modernizing their armed forces.
What were the primary reasons for excluding specific sources during the 'full and open competition after exclusion of sources' process?
Excluding sources in a full and open competition typically occurs when specific capabilities, security clearances, or proprietary technologies are required that only a limited number of vendors possess. This ensures that the awarded contract meets stringent technical or security prerequisites, though it necessitates clear justification to maintain competitive fairness and avoid potential protests.
How effectively did the Cost Plus Award Fee structure incentivize VSE Corporation to deliver value within the $40 million budget?
The Cost Plus Award Fee (CPAF) structure allows for reimbursement of costs plus an additional fee based on performance. To assess effectiveness, one would need to examine the award fee criteria, the achieved performance metrics, and the final cost relative to the target. A well-defined CPAF can drive performance, but poorly structured criteria can lead to inflated costs without commensurate value.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002404R4206
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 6348 WALKER LANE, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,045,945
Exercised Options: $40,045,945
Current Obligation: $40,045,945
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002405D4204
IDV Type: IDC
Timeline
Start Date: 2010-03-04
Current End Date: 2012-01-29
Potential End Date: 2012-02-29 00:00:00
Last Modified: 2017-12-05
More Contracts from VSE Corporation
- 200603!001420!2100!w15p7t!usa Communications-Electronics !daab0703db012 !A!N! !Y!0069 ! !20051230!20090130!049997380!049997380!049997380!n!vse Corporation !2550 Huntington AVE !alexandria !va!22303!01000!510!51!alexandria !alexandria (city) !virginia !+000030653370!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !n!b!n!n! ! !C! !a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $428.9M (Department of Defense)
- CR-2417, "PM Assured Mobility Systems (AMS) RG31 and RG33 Family of Vehicles (fov)contractor Logistics Support (CLS)" — $324.8M (Department of Defense)
- Task Order for PM AMS Contractor Logistic Support for Route Clearance Equipment. Theater of Operations Iraq and Afghanistan — $272.5M (Department of Defense)
- Hourly Labor of Mechanics, Painters and Other SCA Covered Labor Categories AT RED River Army Depot — $210.0M (Department of Defense)
- Siezed and Forfetited Assets — $194.3M (Department of the Treasury)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)